Growing foreign influence on Dutch private sector

26/07/2007 15:00

The effects of growing globalisation are also noticeable in the Dutch private sector. In 2005, non-financial companies realised a total value added to the amount of 283 billion euro. Foreign-owned companies accounted for one quarter, as against 19 percent in 1996.

Value added non-financial companies

Value added non-financial companies

Largest foreign share in manufacturing industry

In 2005, foreign companies made the most substantial contribution in manufacturing industry. They accounted for over 40 percent of value added in this sector, as against 28 percent in 1996.

Between 1996 and 2005, foreign investors got hold of various large Dutch companies active in the manufacture of basic metals and transport equipment, e.g. Hoogovens and DAF Trucks.

Considerable growth foreign influence in transport and communication

Foreign investors also extended their influence in the sector transport, storage and communication. In the period 1996–2005, the proportion of total value added generated in this sector grew from 4 to 24 percent.

The sizeable increase was partly due to the takeover of KLM by Air France in 2003. Foreign investors also established control over the majority of providers of mobile telecom services.

Foreign countries penetrate energy market

A couple of years ago, foreign providers became active on the energy market. In 1996, most public utility companies were still government-owned, but in 2005 the collective contribution of foreign providers in the value added of the energy sector had risen to 9 percent.

Contribution foreign countries to value added non-financial companies

Contribution foreign countries to value added non-financial companies

Dutch private sector more active abroad

Reversely, Dutch investors are also very active beyond the Dutch borders. Between 1996 and 2005, takeovers by Dutch investors were frequent. The book value of foreign subsidiary companies grew by more than 40 percent in that period.

Profits achieved by Dutch companies through these subsidiaries also grew significantly from 7.7 billion euro in 1996 to 26.7 billion euro in 2005.

Rob van der Holst, Alan Sebo and Puck van Veen